Help choosing

Is the transfer paper on a liner? A Saga 420 cutter can do this. It is a desktop unit. Cutting 11x17 on a desktop is usually OK. If it is not on a release liner you would need a backer board (cutting mat) as well.

You will primarily be looking for a cutter with an "optical eye", this will scan for the marks that you can print out onto the paper to give the cutter the ability to know where/how to cut. Cheapo ones would be the RedSail/USCutter brand (a lot of times these are also just rebranded to whichever company is selling them). More expensive would be the Roland GX24.

You might want to check the discount threads to see if any of the suppliers you were looking at might have a discount code to save you some more as well (like Coastal Business Supplies).
http://www.t-shirtforums.com/exclusive-discounts-offers-our-preferred-vendors/

What's a liner?
Is the optical eye for cutting without paths and just cuts out the selected areas? I've been reading that cutters cut along paths made from corel or illustrator? I only have Photoshop and will be using solid images not line work.

Vinyl cutters cut vector art, not bitmap files. Bitmap files can have lines and arcs added with a vector trace algorithm. Download InkScape at InkScape.org to be able to create vector files. I can give you a walkthrough if you like (PM me if your interested).

The 'eye' is for doing contour cutting. Contour cutting is needed to cut around pre-printed graphics. There are a couple ways this is done. One is semi-manual where there is a laser dot that you line up by eye on the registration marks. The other method is with an ARMS system that automatically reads the crop marks. This allows the cutter to register the vinyl position so it then knows where to cut on the vinyl to contour cut your images.

Hmm so looks like I do need one with an eye then

That would be tough to do with the detail in the top right hand portion but it might be possible.

To do this you would first create a contour path and alignment marks and then print this image with the alignment marks. The cutter will then align to the alignment marks and thus know where the image is and then execute your contour cut around the image.

Hmm so what brand do you recommend. I want something that can do the job but cheap

I would recommend a Saga unit with DragonCut. You can go with a Contour 1500 or Contour 2400 (stepper unit with auto-manual alignment) for now and then later, trade it in for a Servo or an ARMS unit as you grow.

Ok thank you I'll look into this cause scissors is just a pain.